Banks
Romanian central bank warns on tax as dispute worsens
New team must be installed to lead central bank, says prime minister’s adviser
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
Europe’s ‘zombie lending’ harmed recovery – BoE paper
Forbearance appears to harm output, investment and total factor productivity, paper finds
Draghi unveils new bank funding as ECB forecasts slower growth
Forward guidance extended and third round of TLTROs introduced as Draghi warns of uncertainty
Riksbank to reduce reserves and toughen ELA regime
Gold and foreign exchange assets will decline from $56 billion to $48 billion by October 2019
Weak pass-through may shield UK from sudden rate rise – BoE’s Saunders
Central banks may start to lose control of policy transmission even above lower bound, says MPC member
ECB warns draft Greek law could damage banks
Key details of measure are unclear but could be damaging, says ECB
UK’s FCA unveils ‘near-final’ plan to cope with hard Brexit
EBA calls for further action on deposit insurance as the FCA aims to ensure regulations will still function
Regulators must not be too strict in a crisis – BIS paper
Cyclical capital requirements should account for downturns as well, author argues
Foreign banks expect Fed proposal imminently
New framework for tiering foreign bank requirements could come as early as this week
Most financial stability committees lack policy tools, researchers say
Many committees lack good internal processes and ability to implement policies, authors say
Bank of Jamaica increases efforts to stimulate inflation
Central bank cuts policy rates and reserve requirements to spur credit growth
US bank interconnectedness is falling – San Fran Fed paper
New method focuses on idiosyncratic factors to identify possible links, researchers say
Buffers should not be rebuilt too quickly – Bank of Canada paper
Requirements should be lower during crisis recovery to avoid bank default, researcher argues
Print-your-own banknotes could be the future – DNB official
Single-use banknotes with QR codes could be the future of cash, DNB cash head says
Central banks disagree over cash regulation
The BoE has issued legislation demanding banks supply certain denominations, but other regulators remain on the fence about how they should manage the future of cash
Climate change: a new challenge for financial stability?
Do climate change and the transition to a low-carbon economy pose a risk to financial stability? What is the role of central banks?
The role of e-cash in China
The use of e-cash stored on integrated circuit cards notably reduces cash handling fees and increases security. It also offers greater convenience notwithstanding the rise of mobile payments
UN report questions value of fintech sandboxes
Regulators are “unprepared” for the level of effort and resources needed to launch a sandbox, but complementary policies and thematic sandboxes could be the answer
ECB says Romanian government breached EU law over bank tax
Governor again warns emergency tax decree could harm banks and damage monetary policy
Nordic-Baltic crisis simulation seeks to reinforce collective response
Nordic-Baltic Stability Group carried out first region-wide crisis scenario in January
Flattening yield curve increased retail banks’ profits – Chicago Fed
The results reflect a change in banks’ business models after the financial crisis, researchers say
The Brexit conundrum
The Bank of England has only limited room to respond to a hard Brexit
The answers to the 2018 Central Banking Christmas quiz
We reveal the answers to the Christmas quiz, and the winner